PUBLISHER: The Business Research Company | PRODUCT CODE: 1563223
PUBLISHER: The Business Research Company | PRODUCT CODE: 1563223
Energy-as-a-service (EaaS) is a concept whereby customers pay for an energy service without needing to make any initial capital investment. The EaaS model typically takes the form of a subscription for energy devices owned by a service provider or management of energy usage to offer the desired energy service.
The energy-as-a-service market includes revenues earned by entities (organizations, sole traders and partnerships), by providing end-to-end management of a customer's energy assets and services. Energy-as-a-service offers energy services such as lighting to customers for consideration of a recurring fee. EaaS utilizes advanced technologies, such as hardware (energy devices) and software and makes them more accessible to customers, service providers, the electrical grid and potentially, the overall energy community.
The global energy-as-a-service market was valued at $44,481.88 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 7.0%.
Surge In Energy Demand And Consumption
The surge in energy demand and consumption significantly drove the growth of energy-as-a-service (EaaS) market. As energy needs surged, both businesses and consumers sought more efficient and flexible solutions to manage their consumption. EaaS emerged as a viable option, offering tailored energy management, reduced costs and enhanced sustainability. This model allowed providers to leverage advanced technologies and data analytics to optimize energy use, ultimately meeting the escalating demand while promoting a shift toward more adaptive and service-oriented energy solutions. According to a report published by the Energy Institute (EI), a UK-based professional membership body for the energy sector, total global electricity generation experienced a 2.3% increase during 2022 compared to 2021. In addition, primary energy consumption in non-OECD (Organization for Economic Co-operation and Development) countries surged by 20.5 EJ (exajoule) from pre-COVID levels, largely due to China's growth of 14.6 EJ, accounting for 72% of the rise. Therefore, the surge in energy demand and consumption propelled the growth of the energy-as-a-service market.
Focus On Artificial Intelligence Enhances Customer Engagement And System Efficiency
Companies in the energy-as-a-service market are focusing on integrating artificial intelligence (AI) in energy services and strengthening their service offerings. AI is used to manage energy flows within and between buildings, businesses, storage batteries, renewable energy sources, microgrids and the main power, grid in order to optimize energy systems. This lessens energy waste, while raising consumer awareness of energy use. For example, in June 2024, Avangrid Inc, a US-based energy services and delivery company, launched an artificial intelligence (AI) pilot aimed at enhancing customer service at its utility subsidiaries. Ava, an AI energy assistant, is available for customers of Avangrid's New York subsidiaries, New York State Electric & Gas (NYSEG) and Rochester Gas and Electric (RG&E). The company plans to roll out this new feature at its subsidiaries in Maine (Central Maine Power) and Connecticut (United Illuminating) in late 2024.
The global energy-as-a-service market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 22.1% of the total market in 2023.
Energy-As-A-Service Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global energy-as-a-service market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for energy-as-a-service? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The energy-as-a-service market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider energy-as-a-service market; and compares it with other markets.